Neptune Technologies & Bioressources Inc. (NASDAQ: NEPT – TSX:NTB) and Rimfrost USA, LLC announce that they have signed a strategic non-exclusive krill oil Manufacturing and Supply Agreement giving Neptune the right to purchase, at a preferred price, up to 800 metric tons of krill oil during the first three-year term of the renewable agreement.
“This announcement, which is now in effect, is another important step in our action plan to secure and increase our krill oil supply chain through third-party agreements,” highlighted Mr. Henri Harland, president and CEO of Neptune. “By moving from a centralized to a diversified production model we are further strengthening and safeguarding Neptune’s operations.”
“The krill oil purchased from Rimfrost will be further processed by Neptune to meet our Eco ‘EKO™’ krill oil standards,” continued Mr. Harland. “Moreover, we will also have the ability to produce more than 150 metric tons of Neptune’s premium ‘NKO®’ krill oil annually upon completion of our Sherbrooke production facility, which is expected before the end of the current fiscal year. For the foreseeable future, we have now increased our overall annual krill oil production capacity to a level which allows us to meet increasing customer demand for krill oil in the market.”
“This strategic partnership assures supply while the Sherbrooke facility is under construction and strengthens our overall production capacity to meet future growth,” continued Mr. Michel Timperio, senior vice president global sales at Neptune. “Furthermore, it brings greater flexibility by allowing us to focus our in-house production efforts on Neptune’s novel omega-3 phospholipid krill oil, NKO, while also meeting the demand for good quality krill oil through third-party manufacturing and supply agreements.”
“This announcement follows the settlement of our patent disputes with Neptune and is reflective of our ability to work together strategically as new industry partners,” highlighted David Peele, president at Rimfrost USA. “It also benefits both parties, by increasing our mutual sales potential.”
“With increasing consumer awareness, the global omega-3 retail market is growing at double digit rates and with it the demand for our unique, beneficial krill phospholipid omega-3’s,” said Even T. Remøy, sales and marketing director at Olympic Seafood AS and manager at Rimfrost USA. “Our partnership with Neptune will allow us to further focus on this fast growing trend.”